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Currency Market Analysis

Oct 05, 2018 | Currency Market Analysis

Global Themes

USD climbs further as interest rates bite; US jobs due

The USDSGD climbed to the highest level since July 2017 overnight as the move in US bond yields continued to impact on markets.

US ten-year bond yields hit new seven-year highs of 3.23% with the market up from the 3.05% seen before last week’s Federal Reserve rate hike.

At lows

The USDSGD was up 0.1% yesterday.

The commodity currencies were sharply lower.

The Aussie was weaker in all major markets. The Canadian dollar gave up its recent trade-inspired gains.

The euro and British pound were both stronger.

US jobs

The US dollar could climb further ahead of the critical US non-farm payrolls report due at 8.30pm.

The move in US bond yields has been driven by better US economic data and another strong jobs report could boost the USD.

The September report is expected to show 185k new jobs were created with the unemployment rate likely to fall from 3.9% to 3.8%.

The US jobs report has beaten expectations on five of the eight releases this year signalling the US’s recent run of better results.

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